What does 'price manipulation' refer to in commodity markets?

'Price manipulation' in commodity markets specifically refers to the act of illegally influencing the price of a commodity to create an artificial or misleading appearance of supply, demand, or market conditions. This manipulation can take various forms, such as cornering the market, spreading false information, or executing trades intended to distort the price levels.

This definition is rooted in the regulatory frameworks that govern commodity trading, which are designed to ensure transparency, fairness, and integrity in the market. Engaging in such practices violates the principles that protect market participants and can lead to severe penalties from regulatory authorities.

The other options represent different concepts that do not align with the definition of price manipulation. For example, a common strategy utilized by investors does not inherently imply illegality or manipulation; it simply reflects typical trading behaviors. Similarly, methods aimed at stabilizing market prices or managing risk are legitimate activities intended to maintain market efficiency and investor confidence.